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Is Trump about to inherit a fiscal train wreck? This Reagan-era financial analyst thinks so

Will Trump have to pay Obama’s and Bush’s massive debt bill with his presidency?

(NationalSentinel) Earlier we reported that March is shaping up to be a stellar month, politically speaking, for the Republican Party and President Donald J. Trump, with several things coming into alignment that could produce GOP policy advances not seen in a decade.

But March could also be the beginning of the end of the Trump presidency, and what’s more, there are underlying factions within the U.S. government, the media establishment and the globalist cabal who are actually counting on it.

In an interview with USA Watchdog, former Reagan Administration White House Budget Director David Stockman had some dire things to say about today’s stock market and how it has reacted to the election of Trump.

“I think we are likely to have more of a fiscal bloodbath rather than fiscal stimulus.  Unfortunately for Donald Trump, not only did the public vote the establishment out, they left on his doorstep the inheritance of 30 years of debt build-up and a fiscal policy that’s been really reckless in the extreme,” Stockman said.

“People would like to think he’s the second coming of Ronald Reagan and we are going to have morning in America.  Unfortunately, I don’t think it looks that promising because Trump is inheriting a mess that pales into insignificance what we had to deal with in January of 1981 when I joined the Reagan White House as Budget Director.”

When asked if he believed that the so-called “Trump bump” in the markets is going to continue, he was pessimistic, to say the least.

“I don’t think there is a snowball’s chance in the hot place that’s going to happen,” said the author of the book, “Trumped,” which predicted a Trump victory in November. “This is delusional.  This is the greatest suckers’ rally of all time.  It is based on pure hopium and not any analysis at all as what it will take to push through a big tax cut.  Donald Trump is in a trap.

“Today the debt is $20 trillion.  It’s 106% of GDP. . . .Trump is inheriting a built-in deficit of $10 trillion over the next decade under current policies that are built in.  Yet, he wants more defense spending, not less.  He wants drastic sweeping tax cuts for corporations and individuals.  He wants to spend more money on border security and law enforcement.  He’s going to do more for the veterans.  He wants this big trillion dollar infrastructure program.  You put all that together and it’s madness. It doesn’t even begin to add up, and it won’t happen when you are struggling with the $10 trillion of debt that’s coming down the pike and the $20 trillion that’s already on the books.”

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Stockman then dropped this bombshell:

I think what people are missing is this date, March 15th2017. That’s the day that this debt ceiling holiday that Obama and Boehner put together right before the last election in October of 2015. That holiday expires. The debt ceiling will freeze in at $20 trillion. It will then be law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises.  Everything will grind to a halt. I think we will have a government shutdown. There will not be Obama Care repeal and replace.  There will be no tax cut.  There will be no infrastructure stimulus. There will be just one giant fiscal bloodbath over a debt ceiling that has to be increased and no one wants to vote for.

Stockman also said he believes gold and silver will have positive price moves as well.

© 2017 USA Features Media

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